Logistics anu

Supply Chain
Nanagement
Assignment
SCM SvsLem of Ponda
MoLors
ÞŦMŦSomanna Ŵ 09109
5upp|y Cha|n Management 5ystem of nonda Motors
@e sLudv of Ponda's SCM svsLem ls of lLs operaLlons ln Le uSŦ Alona wlL @ovoLaţ Ponda ave one
of Le sLronaesL SCMs ln Le auLomoLlve lndusLrv and Lls sLrona LradlLlon arlses from Le facL LaL
Lev belona Lo Le !apanese sLable of quallLv developmenL and quallLv processesŦ
Ponda's CperaLlonal pracLlces sow a areaL example of Le lnnovaLlons Le !apanese auLomoblle
manufacLurers perform and some of Lelr operaLlonal sLraLeales are as followsť
O Careful slLe selecLlon of Lelr uS manufacLurlna planLs
O reenfleld ManufacLurlna ÞlanLs
O nŴ depL suppller relaLlonslp wlc ls close and lnLeracLlveţ slmllar Lo a parLnerslp
O AuLonomlc oraanlzaLlonal sLrucLure
O !apanese/norL Amerlcan manaaer mlx
O new enLranLs focus on more esLabllsed producLs and processes
nonda Þurchas|ng Þrocess and D|fferent|ators
Ponda uses Lelr economles of scale bv worklna wlL Lelr parLs suppllers Lo order raw maLerlals ln
larae quanLlLles and Lerefore lnLearaLe Lelr suppllers lnLo Le enLlre purcase process ln Le
followlna wavsť
O Suppllers are lnvolved wlL developmenL and deslan of new producLs
O elaLlonslps wlL suppllers ls muc llke a parLnerslp
O or Le success of Le funcLlonlna of Le unlL lL requlres an lnŴdepL suppller selecLlon
process
Some of Le structura| character|st|cs of Le Ponda supplv caln are also known as execuLlonal
drlvers LaL reduce operaLlna cosLs and lncrease producLlvlLvŦ Lconomles of scale are acleved as all
purcaslna ls done bv Ponda @radlna Amerlca CorporaLlon and Le Lecnoloav used are
mulLlpurpose maclnerv wlc furLer reduce Le assoclaLed manufacLurlna cosLs LranslaLlna lnLo
lower cosLs of producLlonŦ WlL reaard Lo capaclLv uLlllzaLlon also Ponda operaLes faclllLles ln everv
ma[or markeL Lev enLer and Lerefore cuL ouL problems of ouLsourclna and dependence on
exLernal markeLs Lo drlve local onesŦ


amp|e of nonda 5upp|y Cha|n

Market Character|st|cs
@ advancemenLs ln Le markeL ave been ploneered bv Le !apanese car manufacLurers
especlallv Ponda wlL Lecnoloales suc as Le 3rdwave dlsLrlbuLlon sofLware bv 8llnco SvsLems
wlc assures parLs quallLvţ conLrols avallablllLvţ auaranLees dellverv and provldes conslsLenL
maLerlals prlclna
LxLernal facLors suc as lncreaslna oll prlces also effecL LransporLaLlon cosLs for all markeLs
Compet|t|ve Character|st|cs
SLraLealc and operaLlonal varlables musL be facLored lnLo Le deslan of a companv's alobal value
caln wlc can be covered ln Le followlnať
O emand caln (markeLlnaţ salesţ servlce)
O Supplv caln (sourclnaţ manufacLurlnaţ loalsLlcs)
O ÞroducL developmenL (Ǝţ deslanţ enalneerlnaţ developmenLţ and launc)
5upp|y Cha|n Character|st|cs
@e kev elemenL for Ponda ls Le flow of lnformaLlon wlL Lelr suppllers wlc ls covered ln Le
followlna 12 sLepsť
nlLlal conLacLţ preparaLlon/lnvesLlaaLlon of Ponda parLsţ quoLaLlonsţ lnlLlal planL vlslLţ proLoLvpe
developmenLţ LesLlna and evaluaLlonţ mass producLlon quoLaLlonţ preparaLlon for mass producLlonţ
Lrlal runţ CuallLv Assurance vlslLţ aareemenL and purcase orderŦ
Company 5pec|f|c Character|st|cs
SLraLealc sourclna lnvolves maxlmlzlna Le value added Lroua Ponda's exLernal suppllers and Lev
alwavs wlll coose Le laesL suppller ln overall servlce (noL [usL lowesL prlce)
Ponda also pracLlces @araeL prlclna wereln Lev prepare a prlce Lable for parLs and lf Le prlce
cannoL be meLţ Ponda wlll work wlL suppllers Lo aeL cosLs downŦ
CŦCŦDŦDŦM at nonda
AL Ponda cusLomer saLlsfacLlon ls Lop prlorlLv and Lls ls accompllsed Lroua suppller's
compeLlLlveness ln quallLvţ cosLţ dellvervţ developmenLţ and manaaemenL (CŦCŦŦŦMŦ)
@ls prlnclple ls waL drlves Ponda's enLlre manufacLurlna and flnal dellverv processŦ
Ingred|ent |ements
Cua||ty O Most |mportant factor |n f|na|
percept|on and sa|e of product
O Must be bu||t |nto product|on process

Cost O 5upp||ers are g|ven target costs
O Cost reduct|ons through own |deasţ
techno|ogyţ |mproved product|v|tyţ
a|ong w|th [o|nt efforts w|th nonda |n
va|ue eng|neer|ngţ and va|ue ana|ys|s
De||very O 5upp||ers must use [ustŴ|nŴt|me
product|on system

Deve|opment O Dn|queness |n des|gn and spec|f|cat|ons
O ne|ps create |dent|ty for nonda

Management O Þos|t|ve att|tude and encourage new
|deas
O Measured by CŦCŦDŦD
O rade cards for supp||ers to ga|n
feedback |nto the process


Now Ind|a |s a part of nonda's |oba| 5upp|y Cha|n
Ponda MoLorsƌ as a planL ln a[asLan wlc ls an exporL base for cerLaln kev enalne componenLsţ
and noL a manufacLurlna ub llke some oLer auLoŴmakers suc as Pvundalţ Suzukl and enaulL
alreadv aveŦ @e companv as slmllar bases ln oLer ASLAn counLrlesŦ
Ponda Slel Cars ndla (PSC)ţ a subsldlarv companv of Ponda MoLor CorporaLlon (PMC)ţ !apanţ ls Le
sourclna base for crlLlcal enalne componenLs Lo oLer Aslan markeLsŦ PMC ls Le second mosL proflLŴ
maklna car companv ln Le worldţ belnd @ovoLaŦ
WlL Le alobal markeLs plaaued bv currencv flucLuaLlons lmporLlna componenLs lsn'L a feaslble
opLlonŦ Soţ lL ls onlv naLural for lnLernaLlonal auLo makers Lo seL up Lelr own producLlon faclllLles ln
Le counLrv and also Lle up wlL local vendors for componenLŦ
@us we see ow Ponda's robusL supplv caln manaaemenL svsLem as manaaed Lo lnLearaLe
lnLernaLlonal markeLs Lo add Lo lLs overall efflclencv and reduce cosLs on Le woleŦ